Main scenario: consider short positions from corrections below the level of 1.2983 with a target of 1.2650 – 1.2540.
Alternative scenario: breakout and consolidation above the level of 1.2983 will allow the pair to continue rising to the levels of 1.3084 – 1.3220.
Analysis: the first wave of larger degree (1) of 5 is presumably developing on the daily chart, with wave 1 of (1) formed as its part. On the H4 chart, a descending correction is developing as the second wave 2 of (1), with wave b of 2 formed and wave c of 2 unfolding as its parts. Apparently, the third wave of smaller degree (iii) of c is forming on the H1 chart, with wave iii of (iii) nearing completion as its part. If the presumption is correct, the pair will continue to fall to the levels of 1.2650 – 1.2540 once the corrective wave iv of (iii) is completed. The level of 1.2983 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3084 – 1.3220.
Price chart of USDCAD in real time mode
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